Apple delivers a standard set of features including geolocation, push-based e-mail, and Web browsing, but the true differentiator is its combination of a sleek form factor and full-screen display with a multi-touch interface and application-integration capabilities.
Apple’s multi-touch interface eliminates the keyboard, allowing users to control applications via single or multiple finger touches, and providing more screen area for application viewing.
Application integration allows for features such as one click calling of names from within the e-mail in-box or address book.
Voicemail messages can be viewed and listened to in any order. Apple also delivers automatic roaming between EDGE, GPRS/GSM and WiFi services.
Despite its advances, the iPhone isn’t a true enterprise device, lacking the ability to synchronize the Apple contact and calendar applications with Exchange or Lotus Notes servers, view or edit office documents, or support managed security controls.
However, we expect a combination of native and third-party applications will address these challenges, particularly since Apple made third-party development easier by using its OS X operating system on the iPhone.
Apple and (NYSE:T) will jointly sell the device, though Apple is supporting it solo for now.
Until such time as enterprise-support options exist, organizations will not get the kind of support they are used to when using products such as the (NASDAQ:RIMM) BlackBerry.
Finally, the exclusive arrangement with Cingular means vendor lock-in and no ability for enterprises to drive down prices, though with the large and growing number of iPhone competitors such as the (NASDAQ:PALM) Treo and (NYSE: MOT) Q, this is likely to be a minor issue.
Nemertes sees the following impacts:
For enterprises: Users will ask for the iPhone, but wait until security, usability and management issues are resolved before deploying. Also consider waiting until Apple resolves the anticipated “version 1.0” bugs.
For vendors: Smartphone competitors will stress enterprise feature sets that Apple currently can’t match. Expect downward pricing pressure on RIM, Treo, Motorola and (NYSE:NOK) smartphones.
For investors: Just as the success of the iPod led to a robust ecosystem of third-party products, we expect the same to happen for the iPhone. Look for opportunities to invest in companies bringing accessories to market, especially those that can solve enterprise challenges.